Intuitive Surgical Posts Strong 1Q Results, Beats Street Estimates

Intuitive Surgical delivered strong 1Q results with revenues of $1.29 billion, up by 18% year-on-year, and beating analysts’ estimates of $1.1 billion. The robotics products and surgical equipment provider reported non-GAAP earnings per diluted share of $3.52, topping consensus estimates of $2.64 per share.

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Intuitive Surgical’s (ISRG) CEO, Gary Guthart said, “We are pleased with this quarter’s performance. Our performance reflects customers choosing Intuitive as COVID eases.”

ISRG said that the use of its minimally invasive procedure, the da Vinci procedure, increased 16% year-on-year while the company shipped 26% more da Vinci Surgical Systems in 1Q compared to the same quarter last year. The growth in revenues was driven by a rise in system placements and da Vinci procedures. (See Intuitive Surgical stock analysis on TipRanks)

Following the earnings, BTIG analyst Ryan Zimmerman reiterated a Hold on the stock. Zimmerman said in a note to investors, “Comments that provide particular optimism out of the call include: 1) Procedures grew through the Q (vs. a rapid inflection in March), coupled with a broad recovery across procedure types… 2) Capital demand at hospitals outpaced expectations again, proving that hospitals’ finances are potentially stronger than assumed; and 3) ISRG provided guidance which we think is conservative given the assumptions underpinning it (discussed below)”

ISRG shares have rallied 13.4% in the past five days.

Overall, consensus among analysts is that ISRG is a Moderate Buy, based on 6 Buys and 6 Holds. The average analyst price target of $877.10 implies downside potential of about 1.6% to current levels.

According to the TipRanks Smart Score system, ISRG scores a 9 out of 10, indicating that the stock is likely to outperform market expectations.